So you’ve finally chosen to sell your home. The decision you’ve made is one of the most significant financial decisions you will take in your life, so you need to ensure that everything goes smoothly. When you’re ready to sell your home, you will want to make a timely sale, and knowing how to do this is the challenging part.
A home that’s been on the market for too long will attain less money when it’s sold. However, there’s also the issue of underpricing or overpricing, which can drive potential clients away. To avoid doing this and getting the correct return on investment, here are some things to consider when pricing your home:
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1. The Condition of the Real Estate Market
One of the first things you will need to consider is the condition of the market, in this case, the real estate market where you will be selling. This is the first thing you will need to look at when selling a home in your specific area.
There are occasional dips and rises along the way, and before pricing your home, you will want to reach out to your real estate agent. Ask them if the market in your area is a buyer or seller’s market. If it’s a seller’s market, you will be able to ask for a higher price to meet the demand for homes. Alternatively, if it’s a buyer’s market, you will need to price your home competitively if your goal is to sell the house.
You can also choose to wait for the condition to improve, but this is a risk because if it doesn’t, you will have to sell for far less than the price you initially wanted.
2. How Your Home Compares to Other Sold Homes
Have a look at recently sold properties in your area similar to yours to get a good idea of how to price your home. While you may not immediately understand why this is important, it is crucial to determine the real estate value. Moreover, this will help your real estate agent figure out the final value for you to price your property.
They will do this by drawing up a Comparative Market Analysis (CMA), which offers a list of comparables, inclusive of prices relating to sold homes like yours.
Some of the criteria that a CMA contains is as follows:
● Areas or Locations: Certain areas in a community can demand higher prices for real estate, and it’s your agent’s job to help you understand why this is and how your locality compares to other neighborhoods.
● Trend History/Market History: This will show you houses that have been sold in your locality in the last four to twelve months and the trends that were followed.
● The Home’s Condition: If you can’t afford to carry out the necessary repairs for your home before putting it on the market, the potential buyers will ask that the price reflect costs for repairs.
● Size and Style: Your real estate agent will show you homes of a similar size and style to get the right price. Specific floor plans, such as split-levels, will sell for a higher price.
3. The Date of Sold Properties During Comparisons
When you’re comparing homes to find the right price, ensure that the market condition at the time is similar to how it is now. Many make the mistake of neglecting this aspect, but it’s vital for getting the right price.
If you had a look at the market when the competing home was sold and you find that it was a seller’s market, there’s no possible way that you’ll get the same amount or the same response as they did. Alternatively, if you’re in a seller’s market right now where inventory is low, you may be able to ask for a higher price than they did.
Having a professional real estate agent that has the experience and understands the different markets, including the local needs, can go a long way to help you price your home correctly.
4. Expired and Withdrawn Listings
Ask your agent to pull up listings that have expired or withdrawn and find out if they were relisted or if the property was taken off the market. An expired listing means that the home may not have been sold, and the listing limit ran out. On the other hand, a withdrawn listing may mean that the homeowner decided not to sell the property.
After finding this out, you should evaluate these listings to find a pattern for why they didn’t sell or why the listing failed. See if they share common factors; for example, were they all overpriced? Were they in the same neighborhood? Were they in poor condition?
Knowing what went wrong can help you prevent your listing from becoming expired too.
5. Asking Price Vs. Sales Price
When you’re looking at homes that are currently listed in your area, understand the difference between the asking price and sales price.
The asking price is what the seller is hoping to get from the sale, although generally with wiggle room for negotiations.
The selling price is what the buyers actually paid when negotiations were over, and the contracts signed.
As a seller, you can technically set any price you want for your house, but the buyers determine the true value. Trust the recently sold home values and market trends while comparing current listings.
Avoid Mistakes and Rely on Help
Don’t be afraid to rely on your real estate agent for help and ensure that you’re communicating with them and understanding the support they offer you. Make sure that you’re following all the proper steps to avoid mistakes and lose money. Look to your real estate agent to help guide you through the process and get you the price you want.
Have Questions? Ask The Grant Homes Group & Coast2Coast Realty!
The Grant Homes Group & Coast2Coast Realty is the best source of information about the local community and real estate topics. Give us a call today at (888) FLA-GULF (888-352-4853) to learn more about local areas, discuss selling a house, or tour available homes for sale.
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